...Ford Motor Company Corrie Madison-White MGT/521 August 13, 2011 Andrew Rosenberg Abstract A mutual funds manager is trying to decide whether or not they would be willing to invest in the Ford Motor Company. In order to make an informed decision the potential mutual funds manager will look at how recent economic trends are influencing the business, strategies the company has used or could use for adapting to changing markets, tactics the company has implemented to achieve their strategic goals, and the role human resource management plays in helping the company achieve its business goals. Ford Motor Company Ford Motor Company is an American automaker that was founded by Henry Ford. The company was incorporated on June 16, 1903. The headquarters is located in Dearborn, Michigan. It is currently the fourth largest automaker in the world. Ford Motor Company not only produced the Ford brand, they produce Lincoln and Mercury brands. Recently Mercury was discontinued. They acquired Jaguar, Volvo, and Land Rover. They have since sold all three brands. The company also has a small stake in Mazda and Aston Martin (History of Ford Motor Company, 2011). Recent Economic Trends Gas prices have been on the rise since 2008 and have even gone above $4.00 a gallon. Even though gas prices have gone down slightly, some consumers are still opting to park their cars and use public transportation. Some...
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...regarding the future of the corporation I. Overview of Corporation For our final project I chose to study the automotive company Ford Motor company and to analyze their financials from 2006-2010 which was right before the massive economic recession. Ford was able to stay afloat during these rough years however this economic downturned caused one of largest competitors General Motors to receive billions of dollars in bailout money from the United States government. I chose to study Ford because I actually had started investing in their company in my own starting in 2006 and I wanted to study how Ford’s finances were positioned when I began investing and see if it was a great buy or I should have instead invested at the time in Toyota a large multi-national competitor that is based in Asia and also operate in the United States which I had thought about investing the money in back in 2006 however I choose Ford instead. “Mulally who was named president and CEO of Ford, in 2006, the famous American Ford Motor company is a leader in automobile manufacturing industry some of the most purchased products are the Ford Focus, Ford F-150 pickup and the Ford Mustang is always a must have with the sports car enthusiast. Ford Motor Company's family of brands includes cars, crossovers, trucks and SUVs from Ford, Lincoln and Mercury brands. Ford also has thousands of dealerships around the United...
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...Ford Motor Company a Big Three Giant As a manager of a venture capital group, whose capital gains derived from mutual fund investments, and who seek to invest in Ford Motor Company, and analyzing possibilities of investing in mutual fund profits in Ford Motor Company. The company exhibits strength when recent borrowing occurred from the United States government by two of the big three car manufacturers took place. Ford remained defiant, self-sustaining, determined, and marched forward with current capital, and succeeded furthering profits and sales of Ford’s product line. This is a good indicator of stability-singularly, but there must be an in depth study of the business to obtain pertinent data and justifying investment of venture capital. Currently completing a thorough analysis of Ford’s portfolio topics covered includes stability, weak points, seizing opportunities, and last outside influences threatening the stability of the company. Stability Ford Motor Company is a global automotive industry, which manufactures, and distributes automobiles across six continents. The company also engages in other businesses to include financing vehicles the company sells for its customers (CNN Money.com para. 1). The stock average has risen from $10.59 to $10.66 as of close of business September 19th, 2012 (New York Stock Exchange, 2012). This is a good indicator that Ford is on the rise as a giant among the automobile industry. However, other factors are under advisement, and consideration...
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...Ford Motor Company a Big Three Giant As a manager of a venture capital group, whose capital gains derived from mutual fund investments, and who seek to invest in Ford Motor Company, and analyzing possibilities of investing in mutual fund profits in Ford Motor Company. The company exhibits strength when recent borrowing occurred from the United States government by two of the big three car manufacturers took place. Ford remained defiant, self-sustaining, determined, and marched forward with current capital, and succeeded furthering profits and sales of Ford’s product line. This is a good indicator of stability-singularly, but there must be an in depth study of the business to obtain pertinent data and justifying investment of venture capital. Currently completing a thorough analysis of Ford’s portfolio topics covered includes stability, weak points, seizing opportunities, and last outside influences threatening the stability of the company. Stability Ford Motor Company is a global automotive industry, which manufactures, and distributes automobiles across six continents. The company also engages in other businesses to include financing vehicles the company sells for its customers (CNN Money.com para. 1). The stock average has risen from $10.59 to $10.66 as of close of business September 19th, 2012 (New York Stock Exchange, 2012). This is a good indicator that Ford is on the rise as a giant among the automobile industry. However, other factors are under advisement, and consideration...
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...Ford Motor Company Business Analysis I, II, & III The government offered bailout funds to assist with the failing automobile industry, Ford believed they did not need the government’s assistance, but took the funds as a contingency plan. The economy compelled Ford to review the strategic, tactical, and operational planning Along with how the human resource management teams would implement new goals and benchmarks, for the company to become more effective and efficient in providing services to their customers and stakeholders. Going global with marketing concepts has increase sales for the once bankrupted automobile industry. Today, mutual fund managers should take an interest in investing in the automobile industry. However, it may seem unfair not to promote all automobile companies, but Ford Motor Company took no funds from the government and turned their company from the red to green, literally. Ford has fulfilled most of the fundamentals for the company. One major accomplishment was lowering the company debt around 14 billion and closing the Mercury line, to expand into the global market. The company in 2010 made nine billion in global investments (Ford Motor Company, 2011.). In return, the company added tangible employee benefits, merit increases for the United States salaried employees, reinstated the 401K matching program to the employees. Continuing in 2011, the company gave out award bonuses and profit sharing to United States employees. After continuing...
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...sustainable and responsible mutual funds that invest in Fords Motor Company and Kellogg Company. These companies meet the funds goals by qualifying for their screening criteria. All three funds have very diverse portfolios. Calvert Social Index I fund is a very respectful SRI fund and is described on socialfunds.com as “The Calvert Social Index Fund seeks to match the performance of the Calvert Social Index, which measures the investment return of large- and mid-cap stocks of companies that meet Calvert's social investment criteria.” Gabelli SRI Green Fund is described on socialfunds.com as “Fund will seek to achieve its objective by investing substantially all, and in any case, no less than 80% of its assets in common stocks and preferred stocks of companies that meet the Fund's guidelines for social responsibility at the time of investment.” Pax World Balanced Fund is described on socialfunds.com as “The Fund follows a Sustainable Investing approach and expects to invest approximately 60% of its assets in equity securities and 40% in debt securities.” All three funds have a core emphasis of generating returns by investing in sustainable and socially responsible companies. Ford Motor Company and Kellogg Company are both very noticeable companies grounded on their efforts of improving societies and being responsible. All three mutual funds pursue companies who are environmentally responsible and have a positive record. Fords Motor Company is concentrated on reducing and eliminating...
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...analysis for Ford Motor Company before making the decision to invest in the company. The first section discussed the SWOT analysis, which determined the strengths, weaknesses, opportunities, and threats of the company. The second section discussed the financial health of the company, which determined if Ford is a good company to invest in and how it recovered during the recession. Topics that will be discussed include: • How recent economic trends are influencing the business • Ford strategies for adapting to changing market environments • Tactics Ford has implemented or could implement to achieve their strategic goals • The role human resources management plays in helping the company achieve its business goals How Recent Economic Trends are Influencing Ford Motor Company The recession has been one of the most challenging hardships for the United States. Due to this hardship, people are skeptical to spend large amounts of money. These people do not see a recovery occurring as many others are still unemployed. Banks are currently lending to consumers who have high credit scores, and the penalties for late payments are skyrocketing. Unlike many other companies, Ford has been able to recover and excel among its competition. “The company continues to lobby for transportation and infrastructure funding and has taken an active role in advocacy for government support of new technology and research to increase fuel efficiency in automobiles” (Ford Motor Co, n.d...
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...in the first option and invested $10,000 into four companies, Chipotle, Disney, Ford, and Macy’s, and tracked my gains and losses over a ten-day period. Through this activity, I learned how quickly the stock market prices can change from day to day. I started this activity on April 6th, and invested into four different companies. I invested almost half of my budget into one of my favorite restaurants, Chipotle. On the 6th, a share of Chipotle was going for $450.29. I purchased 10, totaling my investment into Chipotle at $4,502.90. I then invested in one of my favorite movie companies, Disney. On the 6th, a share of Disney was going for $113.05. I purchased 10 shares of Disney, totaling a $1130.50 investment in Disney. Then I invested into the well known department store, Macy’s, to have some diversity in my stock. My total investment in Macy’s totaled at $2942.00. For that much money, I purchased 100 shares, making each share $29.42. I then picked a company where I could support my home state, Michigan: Ford. With each Ford share going for $11.27 on April 6th, I calculated that I could purchased 126 shares with my remaining budget. My total investment in Ford ended up being $1,420.02, and my grand total from all four investments was $9,995.42....
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...to $152 billion. These figures have remained steady since that jump, at $156 billion today. Volkswagen’s total revenue was significantly higher than Ford’s and GM’s for the most-recent fiscal year. At $144 billion and $155 billion, respectively, VW’s total revenue is 40% ‒ 50% higher for 2014, at $217 billion. The cost of goods for GM was closer to VW’s, at $142 billion vs. $156 billion, which proved very interesting. This results in a gross profit for VW that is almost three times as high as that of GM ($36 billion vs. $13 billion). Operating expenses for VW were significantly higher than Ford and GM and totaled more than the two American companies combined. Income tax expense is another significant difference. For the most-recent period, VW’s income tax expense was $3.3 billion, and a total of $11.7 billion for the combined four-year period. Due to lower sales and other factors, both Ford and GM had significant negative income tax expenses within the same period. For the period 2011 to 2014, Ford’s income tax expense was ‒$8.5 billion. Comparatively, GM’s was ‒$32.5 billion. Overall, VW’s bottom line has fluctuated significantly since 2011. Over the four...
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...Ford Motor Company Eric Andrews IRN: 9003104860 MGT/521 December 30, 2012 Dr. Tim Williams The purpose of this report is to conduct a SWOT analysis of the Ford Motor Corporation. The author will decide which parts of the SWOT analysis are most relevant to the decision to invest in the company. The author will identify the company’s internal and external stakeholders and those stakeholders’ wants and needs. The author will also explain how the company is fulfilling those needs and if they are not; why those needs are not being meet and how he company can fulfill the needs not being met. Strengths Brand Image Ford Motor Company has strong brand recognition through out the world and is one of the oldest manufacture of automobiles in the world. The company manufactures and distributes automobiles in over 200 markets on six continents (Ford, 2012). Ford’s main strength is it’s brand image because of the Ford and Lincoln brand name (Ford, 2012). Ford place seventh in 2012 amongst the leading automotive brands, ahead of (a) Audi, (b) Hyundai, & (c) Lexus (Ford, 2012). The company’s market share in the United States increased from 14.2% in 2008, to 16.5% in 2011 on the combined sales of their cars and trucks (Ford, 2012). The company is the leading automaker in Canada and Turkey with a 17.1% and 15.8% of car and truck sales (Ford, 2011). Their share of the market in Brazil and Argentina is a respectable 9.8% and 12.9%. The company’s market share throughout the world...
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...Leadership Analysis of Henry Ford Brief Historical Sketch Who knew that a young farm boy that loved tinkering with pocket watches and simple farm equipment would lead a manufacturing revolution. Henry Ford did. Even from an early age Ford understood that he wanted to change the world. His dream was to design and build a “horseless carriage,” a dream that he accomplish in 1908 (Ford, 2008). However, not even Ford could have predicted the magnitude at which both his invention and his business strategies would have on the world. Henry Ford was born in the small town of Dearborn, Michigan on July 30, 1863. The town was better known as the Greenfield Township. Ford’s parents were both European immigrants. His father, William Ford, emigrated from Ireland and his mother, Mary Ford, though born in the United States had strong ties to Belgium. (Henry Ford, 2012) The Fords were a successful farming family and never had to worry about money. While Henry Ford knew at an early age that taking over the family farm would have been a safe and advantageous decision, his ambition kept him focused on other possibilities. (Ford, H 2008) Ford’s teenage years were instrumental in helping him develop is dream and his career. There were two important memories that Ford could recall that sparked his interest in motor vehicles and engineering. Around the age of twelve, the Ford’s were traveling to Detroit with family when they passed a “road engine” delivering farm machinery (Ford, H 2008). This was the...
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...Ford Motor Company Ford Motor Company In 2008, three major U.S. automakers asked the government for a bailout. Ford, along with GMC, was two of those companies. Ford was able to mortgage enough assets and avoid for a bailout to avoid bankruptcy. Since that time, Ford has made strides toward increasing their annual income, providing more fuel efficient cars, and becoming known in the global world market. After reviewing the 2010 income statement, Ford reported a full net income of $6.6 billion. It competitors, Honda reported a full net income of $6.88 billion and GMC a full net income of $6.17 billion. Even though GMC shares are higher, Ford showed higher earnings than GM. According to Ford’s 2010 annual report, the earnings per share increased by 80 cents a share from 2009 and that the net income is Ford’s highest in more than ten years (annual report). It would be beneficial for Ford management to investigate a variety of ways to increase interest among its internal and external stakeholders to purchase stocks which in turn will help to increase the overall net profit of the company. In looking at the balance sheet, Ford reported the most in liabilities and long term debt. However, Ford showed greater earnings assets than both Honda and GMC (Appendix B). Honda reported the lowest amount in liabilities and a significantly lower long term debt than Ford (Appendix B). Overall, GMC fared better than Ford on the balance sheet with the lowest long term debt and decreased...
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...Should the Australian Government provide money to car manufacturers to prevent them from moving their operations overseas? Discuss, drawing on contemporary debates about this issue in the news media? The Australian Government should provide money to car manufacturers to prevent them moving their operations overseas. The car manufacturing industry provides jobs to many Australians and by moving operations overseas many Australians will lose their jobs. Due to the recent overseas relocation of Ford and Toyota there has been a “loss of.. 50,000 jobs” (Martin, Feb 12th 2014, SMH). By losing their jobs, Australian workers are being left stranded without an income and the inability to work in the industry they have been trained in for most of their careers. By the government giving million dollar packages to major car manufacturing companies such as Holden, they are giving employees payouts to assist them after they leave the company. Also by giving companies huge subsidies, they are trying to help them not to move their operations offshore into foreign countries. However by giving car manufacturing companies such as Holden and Toyota huge payouts, the common Australian taxpayer is left to fit the bill. Many critics of the Australian government’s huge subsidies are questioning whether it is worth pouring millions of dollars into an industry which is closing down operations in Australia by 2017. David Sinclair, a Professor of Economics at RMIT said that “you can’t just really buy...
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...Financial Analysis of The Ford Motor Company Samar Shaba February 17, 2014 INTRODUCTION: In this report a detailed financial analysis of the Ford Motor company is presented. The information in the form of financial statements namely balance sheet, income statement and cash flow statement, is used to compute various financial ratios. From the provided data liquidity, leverage, turnover and market value ratios are calculated for both Ford and its competitor General Motors. The report proceeds by comparing the key financial ratios of Ford and GM along with the description of the undermined ratio. The explanation of the financial ratios itself is followed by the actual graph of the ratios over the period of time from 2010 to 2012. The important information for lenders and investors is also mentioned in the report with specific focus on factors influencing the lenders to provide credit and investors to buy stocks in Ford Motor Company. Year to year comparison of trends in key financial ratios is also discussed to make the analysis more explicit and vivid. FINANCIAL RATIOS OF FORD: The analysis of the financial statements of Ford Company reveals following ratios. Some of the most important (Key ratios) are discussed below: Financial Ratios for Ford | GM | | 2010 | 2011 | 2012 | 2012 | Liquidity Ratios | | | | | Current ratio | 2.67 | 2.64 | 2.11 | 1.30 | Quick Ratio | 2.55 | 2.52 | 2.00 | 1.02 | Cash Ratio | 0.30 | 0.34 | 0.23 | 0.34 | Leverage...
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...EXECUTIVE SUMMARY Ford Motor Company started in Michigan in 1903. They have focused on designing and manufacturing that had been successful, however with increasing competition globally and increase capacity it needs to look at ways to improve profitability. Ford Challenge is to continue to research ways to be viable in the market and industry conditions. Dell Computers had been very successful with their virtual integration. However, since Dell and Ford are different types of industries, computer manufacturing and auto industry respectively, it does not seem right for Ford to implement exactly what Dell has which is “virtual integration model”. Realizing an urgent need to change their supply chain in order to make it more cost effective and more profitable, what I am thinking is Ford can partially implement and execute the virtual integration direct business model that has been used by Dell should be applied to Ford’s supplier base, distribution system and dealership. Through this model, Ford will use the emerging information technologies as well as new ideas from new technologies of other industries in order to transact with their dealers, suppliers, affiliates and customer. Ford can also boost its sales by providing better customer service and faster communication between dealers, suppliers, affiliates and customers in value chain. By measuring the performance of this model, Ford should schedule periodical review and evaluation meetings. All improvements along the...
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